Bright Pvt. Ltd. is a private company. Its Board of Directors want to convert the company into an One Person Company. Can it be converted into an One Person Company? Please advise the company about the conditions and pro

According to Rule 7(1) of Companies (Incorporation) Rules, 2014, a private company having paid up share capital of fifty lakh rupees or less and average annual turnover during the relevant period two crore rupees or less may convert itself into one person company by passing a special resolution in the general meeting. Following steps can be followed for conversion of Bright Pvt. Ltd. into a One Person Company: A special resolution is to be passed in the General meeting the company. Before passing such resolution, the company shall obtain No objection in writing from members and creditors. Such resolution shall be filed with Registrar of Companies within 30 days from the date of passing such resolution in Form No. MGT.14. The company shall file an application in Form No. INC-6 for its conversion into One Person Company along with fees as provided in in the Companies (Registration offices and fees) Rules, 2014, by attaching the following documents, namely:- The directors of the company shall give a declaration by way of affidavit duly sworn in confirming that all members and creditors of the company have given their consent for conversion, the paid up share capital company is fifty lakhs rupees or less or average annual turnover is less than two crores rupees, as the case may be; The list of members and list of creditors; The latest Audited Balance Sheet and the Profit and Loss Account; and The copy of No Objection letter of secured creditors. On being satisfied and complied with requirements stated herein the Registrar shall issue the Certificate.